TaxTMI 
TaxTMI 
2002 (3) TMI 69
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.... to be a matter in connection with the money claim which ought not to be entertained by the writ court but the subject matter herein is unjust enrichment by the governmental authority in withholding such sum. Therefore, I hold that writ court can entertain try and determine the issue hereunder. Moreover, at the interim stage the authority was approached by the petitioners for having refund on the basis of any interlocutory order passed by a bench of this court which was acted upon by them and the refund of the principal sum of Rs. 10,00,000/- was made. 3.Therefore, the main issue in final hearing is whether refund of such sum will be made with interest or without interest. If such sum is directed to be refunded with interest what would b....
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.... interest. There the rate of interest is fixed at 17.5% per annum. In 1996 (88) E.L.T. 27 (S.C.) (Shree Baidyanath Ayurved Bhawan Pvt. Ltd. v. State of Bihar) it was held that in case of refund of levy held by any authority will be made with interest and rate of interest was fixed @ 12% p.a. Such payment was directed to be paid along with costs. However it appears to this court that in all the cases writ jurisdiction of the court were invoked for the purpose of redressal of such grievance and the courts uniformly held in favour of refund with interest. 6.Then the next question arose what would be the rate of interest? Mr. Chakraborty submitted that the Parliament by way of amendment of Section 80 of the Negotiable Instruments Act provide....
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.... which has got nothing to go in respect of Section 11B of such Act whereunder a duty is directed to be paid. 8.In reply thereto learned counsel appearing for the petitioners contended that unauthorized levy is the main cause which has been resulted to an appeal whereunder the pre-deposit was made in connection with such unauthorised levy. Therefore, it would be wrongful to say that the pre-deposit is totally unconnected with an unauthorised levy. Hence, they are entitled to get refund of such sum as directed by the CEGAT (Customs, Excise and Gold (Control) Appellate Tribunal along with interest. 9.Upon hearing the rival contentions of the parties I am of the view that a valid question of law is involved hereunder. In the court of Equi....
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....able upon this court. 11.Therefore, whether the claim is in the nature of 'levy' or 'deposit' both are coming under one umbrella i.e. "refund". There is specification under the law that the pre-deposit cannot be regarded as "refund". If appellate authority or Tribunal held that amount so deposited cannot be withheld but will be refunded, the governmental authority cannot be held to be privileged person in refunding the same without interest. 12.Now the second question is what would be the rate of interest. 13.So far the refund in any form including the refund of pre-deposit is concerned, there is no fixed rate of interest to be declared as appropriate. In 1997 (95) E.L.T. 3 (S.C.) (Kuli Fireworks Industries v. Collector of Central ....